South America's importers, exporters gear for growth

Market: LPG
20/10/26

Governments' efforts to fight fuel poverty and ensure supply security will see regional imports rise, writes Efcharis Sgourou

South America's largest LPG importers — Brazil, Chile and Colombia — are expected to ramp up their intake in the coming years as their domestic markets expand significantly, delegates heard at the Liquid Gas Week conference held in Istanbul, Turkey, over 12-16 October.

The US is likely to be their major supplier, but will be increasingly supported by Argentina as it expands its export capacity in the coming years and benefits from trade routes free from bottlenecks and geopolitical disputes, the audience heard.

Brazil is already tackling fuel poverty by providing around 15.5mn more low-income households with LPG for cooking through its Gas do Povo scheme, which it successfully rolled out by July — although demand has yet to significantly rise. "Two million low-income households still cook mainly using firewood, mostly in rural areas [that are easy to reach], so this is a problem we should address," the Brazilian energy ministry's national secretary for oil, gas and biofuels, Renato Dutra, said.

The government launched Gas do Povo, or People's Gas, in November 2025 as a replacement to the Auxilio Gas scheme, which targeted around 5.5mn homes but struggled with subsidy leakage. "We plan to target 17mn families, around 60mn people, or 30pc of the Brazilian population. [Gas do Povo] has a budget of $1bn/yr, so we have tripled the target without increasing the budget a lot," Dutra said.

The scheme has so far reached around 14.7mn families. Many of the remaining household beneficiaries are located in remote regions with limited access to conventional distribution infrastructure. LPG cylinders must be transported by river to communities in parts of the Amazon that cannot be reached by road.

Reaching the remaining households is likely to prove the most difficult stage of the rollout, according to Dutra. "We need to do more — we have to close the last-mile gap."

As well as being expected to import more LPG, Brazil is increasingly diversifying its supply sources. The country imported 1.6mn t of LPG in 2025, down from 1.8mn t in 2024, according to Kpler data, which was largely owing to higher domestic output from gas processing and refineries. But it also increasingly brought in supply from Argentina, taking a record high 720,000t, or 45pc of the total, up from less than 600,000t, or 33pc, a year earlier. Imports from the US stood at 800,000t, retaining the majority share but dropping by 30pc. This trend has continued this year. Brazil has imported just under 1mn t of LPG as of mid-October, with Argentina supplying 422,000t of this, equivalent to 42pc of total inflows.

Milking the cow

This diversification is backed by Argentina's emergence as a major LPG exporter as it develops its Vaca Muerta shale basin. State-owned YPF expects LPG production in the country to rise to 7mn-9mn t/yr by or after 2031, up from just under 3mn t/yr currently, creating additional export opportunities, the company's general manager Juan Gimenez said.

Chile is another importer that could benefit from more Argentinian supply. The country imported more than 1mn t of LPG in 2025, with almost all its cargoes from the US Gulf coast. But declining domestic production and growing concerns around supply security are prompting buyers to explore alternative sources.

"Today we import most [LPG] from the US, from Houston, [so] of course Argentina could be an important supplier not just for Chile but for South America," Chile-based LPG distributor Abastible's chief executive Joaquin Cruz said. Chile is likely to become increasingly reliant on imports as domestic production declines. Supply security has also become a higher priority following disruptions to global trade routes and restrictions at the Panama Canal. "The next 3-4 years, we could change where we are supplying [from]," Cruz said.

In Colombia, rising LPG demand is being driven primarily by declining domestic natural gas availability and higher gas prices, which have encouraged consumers and industries to switch to LPG. The country's imports are expected to increase to meet this additional demand, but unlike Brazil and potentially Chile, the economics for receiving more from Argentina are slightly less compelling.

Colombia relies on its seaborne imports from the far nearer US Gulf coast and the Dominican Republic. Arrivals so far this year stand at around 500,000t, the largest on record and putting them on course to nearly triple from 2025, Kpler data show. Around 60pc of Colombia's LPG imports this year originated from the US and most of the balance the Dominican Republic, while no cargoes have been imported from Argentina since records began.

The domestic industry is "prepared" and investing in import facilities and distribution infrastructure as demand grows, backed by lower natural gas availability and higher gas prices, Colombian LPG association Gasnova president Alejandro Martinez told the event. "We are growing [and] we are prepared," Martinez said. "We are satisfying the need of the people, and we are providing the country security supply through diversification of energy sources."

And as trade and geopolitical disruptions continue to play out, South Americans are becoming increasingly aware of the importance of resilience and diversification.

Brazil LPG sales

Chile LPG supply/demand balance

Colombia LPG supply/demand balance

Argentina LPG supply/demand balance

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The need for energy resilience and flexible fuels in more volatile times provides the LPG industry with a huge opportunity London, 20 October (Argus) — The IEA's proposal for a global LPG reserve mechanism could create the strongest case yet for expanding storage infrastructure worldwide. IEA executive director Fatih Birol and Turkish energy minister Alparslan Bayraktar told delegates at the World Liquid Gas Association's (WLGA) Liquid Gas Week in Istanbul on 14 October that LPG needs to be at the centre of the global energy security conversation. The agency is working with governments and the industry on developing an LPG security mechanism, and could unveil a new policy paper at the next summit on clean cooking in Africa in Nairobi , Kenya, on 27-28 January. For an industry that has long made the case of LPG's value as a clean and easily transportable fuel for cooking in the developing world, backed by a global supply chain, this high-level emphasis on the need for protection from supply shocks amid the Iran war signifies how far LPG has come under the clean cooking movement. The world is "facing the largest energy security threat in history... with more than one-third of LPG trade passing through the strait of Hormuz, mainly to Asia", Birol said. Noting more than half of all LPG is used in homes for cooking and heating, he added: "The current energy crisis is directly affecting the heart of daily life." Energy security is also a matter of national security, Bayraktar told the audience. "We cannot afford to depend on a single energy resource, a single supplier," he added, nor on any one technology or transport route. That "is precisely why LPG deserves greater attention". LPG "is sometimes a little bit overshadowed by its big brothers, natural gas and oil, but its contribution to energy security should not be underestimated", Bayraktar added. "With its flexibility, portability and accessibility, LPG provides an important alternative for millions of consumers, particularly in times of supply disruptions." Turkey has a large LPG market, as the world's second-largest autogas consumer. This means that industry must seek to "strengthen supply chain resilience through diversified sources, reliable infrastructure and stronger international co-operation", he said — something an emergency reserve scheme could help deliver. The need for compact and portable energy such as LPG is increasing despite the electrification drive, Turkish distributor Aygaz's chief executive Melih Poyraz said. "LPG is needed to keep energy flowing when other systems fail," he said. The need for energy resilience and flexible fuels in more volatile times provides the LPG industry with a huge opportunity, distributor DCC chief executive and WLGA president Donal Murphy said. But this opportunity requires substantial investment — in tanks, terminals and caverns. Japan as a key LPG importer has proven it is possible, with emergency reserves of around 2.5mn t , or 90 days worth of imports. India has possibly been the worst affected by the Mideast Gulf war given its limited reserves, prompting the government to ask state-run refiners to build at least 30 days of stockpiles . India is planning to build more storage capacity, while Rwanda and Vietnam are increasing strategic stocks. An IEA framework would give investors the confidence to back new storage projects. Supply is not a concern, with millions more tonnes of LPG expected to flow from the US, as well as more from the Middle East, Argentina and Canada. The easiest solution Greater storage capacity and emergency reserves will be essential to the expansion of clean cooking across Africa. LPG is "the easiest solution today" for Africa's clean cooking transition, Birol said, and the infrastructure developed under a reserve scheme would help bring LPG to millions more homes in the region. The clearest signal from the conference was that governments, the IEA and industry are now pulling in the same direction when it comes to LPG supply resilience. What matters now is whether the money follows. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Q&A: IEA's Birol on LPG's role in African clean cooking

20/10/26

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20/10/26

Q&A: IEA's Birol on LPG's role in African clean cooking

London, 20 October (Argus) — Since the IEA's first summit on clean cooking in Africa in Paris in 2024, governments, development banks, NGOs and the private sector have stepped up efforts to expand access to modern cooking fuels across sub-Saharan Africa, where energy poverty remains most acute. LPG is still the most practical alternative to the harmful fuels used by close to 1bn people in the region, and the IEA has become one of its most prominent advocates despite its fossil-fuel status. Argus' Waldemar Jaszczyk spoke with IEA executive director Fatih Birol in the run-up to Liquid Gas Week in Istanbul this month about progress so far and the challenges ahead: What key developments have been made since the first summit in Paris? For almost 25 years, I have tried to raise this issue. Every year, we publish the World Energy Outlook and highlight how many people lack access to clean cooking, country by country. After trying to push it almost alone, I was very happy to see growing interest. Based on my discussions with different government leaders, we organised the first IEA summit with great success. We had more than 1,200 delegates and almost 10 heads of state. Together, we raised pledges worth $2.2bn. At the end of the meeting, I told government leaders around the world, as well as delegates and the press, that we would track this $2.2bn. About $740mn of this has now been deployed, or one-third. We have a list of projects across Africa, that are mainly LPG — terminals in Kenya and Tanzania, new stove manufacturing in Nigeria and stove deployment in Senegal. The summit was the first such meeting in history. But there are two other events that I want to draw attention to. The most recent was during the UN General Assembly , when a dedicated clean cooking session took place for the first time. I co-chaired it with Kenyan president [William] Ruto. 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Turkey's 'resilient' autogas market faces EV challenge

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EU rules mount for Europe's LPG sector

20/10/26

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20/10/26

EU rules mount for Europe's LPG sector

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UK to provide air defence for Saudi Arabia

20/10/26

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20/10/26

UK to provide air defence for Saudi Arabia

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